Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1887-12-16

cd Attention 20.
To the Congress OF the United States:
You are confronted at the threshold Of
your Legislatures duties with condition OF
the national hnances5Which imparatlYely de
mands immediate and careful consideration.
The amount of money annually eEactedJ
through the operation Of present laws from
the industries and Necessities of the people,
largely exceeds the sum necessary TO meet
the expenses Of the government When we
consider that the theory of our institutions
guarantees TO every citizen the fuu enjoy
ment Of all the fruits of his industry and en-
tarprise, with such deduction as may be has
share toward the careful and economical
maintenance OF the government which pro
tects him. It IS plain the eZacuon OF more
than this Is indispensable e1tOrtiOn and
culpabls betrayal Of American fairness and
justice. This wrong inflicted upon those
VINO bear the burden OF national taEaEOn5
like other wrongs multiplies abroad, with
evil consequences The public treasury,
which should only exist as a conduit convey
ing the peoples tribute to the legitimate OBJ
iects OF expenditure becomes q nOrulng
place for meney needlessly v withdrawn from
trade and the peoples use, thus Gripping
our national energies, Investments IN pro
ductlVe enterprise, threatening financial dis
turbance, and inviting schemes OF public
plumber. This condition of our treasury is
not altogether new, and 1t has more than
once of lats been submitted TO the peoples
representatives IN congress, who alone can
apply a remedy. And yet the situation still
than ever presaglng financial cOnVulslOn
and widespread disaster.
REVENUES AND EXPENDITURES.
1t Will not do to neglect this situation be-
cause its dangers are not now now probably
imminent and apparent. They exist none
the less certainly and await the unforeseen
and unexpected occasion, Whens suddenly,
they VIII be perclplt8ted upon us. On the
tEILn LLHN of sIuuH. 1850 the q FlVnnua
over public expenditures, after complying
with the annual requirements of the sinking
fund act, was SlI,o5J, 1881. Daring tho
year ended June 30, 1886, such excess
amounted to $40 405. 5052O. and during the
year ended June 30, 1887, IL reached the sum
OF $50, j57, S49.J4. The annual contributions
to the sinking fund during the three years
above specified ammOunung IN the aggrs-
gate to Sl5S, O5S, 800. "a, and deducted from
the surplus as stated were made by calling
IN for that purpose outstanding 3 per cent
bonds OF the government. During the SIX
months prior to June 30. 1887, the surplus
revenue had grown so large by repeated ac-
cumulatIOus and 1t was feared the with
draWal of this great sum of money needed
by the people would so affect the business Of
the country that the sum of S79, S64. 100 Of
such surplus was applied to the payment of
the principal and interest of the as per cent
bonds still outstanding, and which were
then payable at the option Of the govern
ment. The precarious condition of financial
needing relief, Immediately after the 3Oth
day Of June, 1887, the remainder of the
per cent bonds then outstanding, amount
ing with principal and interest to the sum OF
SIS, So7, 800, were called in and applied to the
sinking fund contribution for the current
fiscal year. Notwithstanding these opera
uOns OF the treasury department representa-
lions Of distress IN business circles not only
continued, but increased, and absolute per
lis seemed at hand. In these cIrCuulst ances
the contribution to the sinking fund for the
current fiscal year was at once completed by
the expenditure of 81, 6S4. 2S3 80 in the Dur
chase Of government bonds not due bear
ing "A per ceut interest, the premium paid
thereon averaging about p per cent for the
for the former and 8 per cent for the latter.
In addition to this the interest accruing dur
ing the current year upon the outstanding
bonded Indebtedness of the government was
to some extent anticipated and banks Sc
lected as repositories of public money were
permitted to SOM What increase their deDOs-
its. While the eEpedisIts thus employed to
release TO the people the money lying idle
IN the treasury served to avert immediate
danger. Our surplus revenues have
continued to accumulate, the excess
for the present year amounting on
the LIST day of December to $50, 258, 7Ol. 10
and estimated TO reach the sum OF SlI3, Co.,
600 on the Both of June next, at which date
it Is expected this sum. added to prior accu-
ulauOns, viii swell the surplus in the treas
ury to S140OOO,O00 There seems to be no
assurance that with such a withdrawal from
use of the peoples circulating medium, our
business community may not In the near
future be subjected to the same distress which
was quite lately produced from the same
cause and. while the functions Of our nation
al treasury should be few and simple, and
while It's best condition would be reached ]
believe, by its entire discOnnection with pri-
vate business interests, yet when by per
version Of Its purposes 1t idly holds money
uselessly subtracted from the channels OF
trade, there seems to be reason for the
claim THAT lauTffTmafa Ia q
vlsed by the government to restore, IN an
emergency, without waste or e1travagance
such money 10 Its place among. the people.
NO EXECUTIVE POWER OF RELIEF.
II such an emergency arises there now ex-
lists no clear and uudOubted executive power
OF relief. Heretofore the redemption Of g
per cent bonds, which were payable at the
option of the government has afforded a
means for the disbursement of the excess OF
our revenue, but these bonds have all been
retired, and there aresnO bonds outstanding.
the payment of which we have the right to
insist upon. The contribution to the sink
ing fund which furnishes the occasion for
expenditure III the purchase of bonds has
been already made for the current wear so
that there Is no outlet in that direction. In
the present state OF legislation the only Dre-
tense of any existing executive power TO re
store at tins time any part of our surplus
revenues to the people by its expenditure.
consists IN the suppOsltlOn that the secretary
OF the treasury may enter the market and
purchase the bonds of the government not
yet due at a rate of premium to be agreed
upon The only provision Of law from
which such power could be found is in the
appropriation bill passed a number of wears
ago; and It is subject to the suspicion that it
was intended as temporary and limited in
lIS application instead Of confer
ring a continuing discretion and gu-
thorlty. No condition ought to ex-
lst which would justify the grant
OF power to a single official upon his iudg-
ment OF It's necessity, to withhold from a re-
lease TO the business of the people in an IN.
usual manner, money held in the treasury
ana thus AFFECT, at his WILL the financial sit
uation OF the country; and if it is deemed
wise TO lodge III the secretary of the treasury
the authority in the present juncture-to pur
chase bonds II should be plainly vested and
provided as far as possible, with such checks
and limitations as will define this officials
right and discretion, and at the same time
relIets MN from undue responsibility. In
considering the question Of purchasing
bonds as a means of restoring TO circulation
the surplus money accommodating in the
treasury It should be borne IN mind that
premiums must of course be paid upon such
purchase that there may be a large part
Of these bonds held as investments which
sannot be purchased at any price and that
somblnatons among holders who are will
ng TO sell may uureasonably enhance the
cost OF such bonds 10 the government 1t
has been suggested that the present bonded
debt might be refunded at a less rate OF in
terest and the difference between the old
and new security paid IN cash, thus finding
use for the surplus in the treasury. The
success Of this plan, it is apparent,
must depend upon the volition of the
holders of the present bonds; and it is not
entirely certain that the inducement which
must be offered them would result in more
financial benefit TO the government than the
purchase of bonds, while the latter prOpo-
sition would reduce the principal Of the
debt by actual payment instead of extend
ing It. The proposition to deposit the money